The Hidden Costs of Homeownership: What Buyers in California Should Know

Buying a home is one of the most exciting and rewarding milestones in life — but it’s not just about the mortgage payment. If you’re planning to purchase a home in Chico or anywhere in California, it’s important to understand the hidden costs that come with homeownership so you can budget wisely and avoid surprises down the road.

Here are some key expenses to keep in mind:

1. Property Taxes

Depending on where you live, annual property taxes can significantly impact your monthly budget. In California, property taxes are usually around 1.1% of the home’s assessed value, but this can vary with local assessments and special district fees.

2. Homeowners Insurance

This is a must for protecting your investment, but premiums can be higher in areas prone to wildfires, like some parts of Northern California. Shop around to find a policy that offers strong coverage at a fair price.

3. Maintenance and Repairs

Leaky faucets, broken water heaters, landscaping, or a new roof down the line — home maintenance costs can add up quickly. A good rule of thumb is to set aside 1–2% of your home’s value each year for upkeep.

4. HOA Fees

If your property is in a community with a homeowners association, you’ll likely pay monthly dues. These fees vary widely depending on amenities and services provided.

5. Utilities and Services

Electricity, water, trash, internet, pest control, and landscaping — all part of keeping your home running smoothly. These costs may be higher than what you paid as a renter.

6. Appliances and Furnishings

New homes may not come with a refrigerator, washer/dryer, or window coverings. Plus, you might want to invest in furniture that fits your new space.

How I Can Help

As a local mortgage advisor, I help my clients prepare for all aspects of homeownership — not just the mortgage. Whether you’re a first-time buyer or relocating to Chico or anywhere in California, I’ll build a loan plan that works for your lifestyle, goals, and long-term financial wellness.

Let’s talk about the big picture so you can buy with confidence.